§ 14028 Loan Authorization Limits

• •The state can only give out up to $25 million in loans for projects in 3 months.
• •The state won't approve a loan unless they think the person asking can pay it back.
• •The state can ask the Public Utilities Commission for advice on whether the person can really pay back the loan.

A company wants to borrow $10 million from the state to build a new factory.

The state will check if the company can pay back the $10 million. If the state already gave out $20 million in loans this quarter, they can still approve this loan because $20 million + $10 million = $30 million, which is under the $25 million limit. Wait, no—that’s over the limit! So the state would say no or wait until next quarter.